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Producer prices in Japan were up 0.5 percent on month in July, the Bank of Japan said on Friday.
That beat forecasts for a gain of 0.2 percent, which would have been unchanged from the previous month.
On a yearly basis, producer prices climbed 3.1 percent - exceeding expectations for 2.9 percent and up from 2.8 percent in the previous month.
Export prices were up 0.5 percent on month and 2.8 percent on year, the bank said, while import prices advanced 1.0 percent on month and 11.5 percent on year.
